Consulting on Drafting Employment Contracts in Vietnam (2026)

Consulting on drafting employment contracts in Vietnam (2026) is a necessity that many enterprises care about to ensure compliance with labor laws, limit dispute risks, and protect the rights of both employers and employees. A fully and strictly structured employment contract that complies with current regulations is not only the basis for establishing an employment relationship but also helps enterprises manage human resources effectively and prevent disputes arising during the working process. In the context of flexible working models, remote work, electronic employment contracts, and increasingly popular information confidentiality requirements, the employment agreement preparation needs to be updated according to the latest regulations. The following article will provide detailed guidance on how to draft labor contracts in compliance with the regulations of 2026 and important legal notes that enterprises should not ignore. By utilizing a professional contract drafting service and labor law consulting, businesses can ensure complete legal safety.

What are the types of employment contracts in Vietnam?

An employment contract is quite special compared to other types of civil or economic contracts in that the law specifically stipulates the types of employment contracts in practice. When drafting labor contracts, businesses must adhere to these classifications.

According to Article 20 of the Labor Code 2019, an employment contract is entered into in one of the following types:

• Indefinite-term employment contract: A contract in which the two parties do not determine the term and the time of termination of the contract validity.
• Definite-term employment contract: A contract in which the two parties determine the term and the time of termination of the contract validity for a period not exceeding 36 months from the time the contract takes effect.

Note: For a definite-term employment contract that has expired, if the two parties sign a new employment contract which is a definite-term employment contract, it can only be signed for one additional time. After that, if the employee still continues to work, an indefinite-term employment contract must be signed.

How many parts does an employment contract in Vietnam consist of?

According to Article 21 of the Labor Code 2019, a complete employment contract usually includes the following basic parts:

Information of the parties

• Information of the employer
• Information of the employee
• The representative signing the contract

Job details

• Job title
• Job description
• Working location
• Working hours

Salary and benefits

• Salary level
• Allowances
• Bonuses
• Insurance regime
• Rest regime

Rights and obligations

• Rights of the employee
• Obligations of the employee
• Rights of the employer
• Obligations of the employer

Confidentiality and contract termination

• Information confidentiality
• Trade secret confidentiality
• Conditions for contract termination
• Responsibilities after contract termination

How to construct job clauses in an employment contract in Vietnam?

The job clause is the basis for evaluating the level of task completion and resolving labor disputes. Proper employment contract consulting will always emphasize this section.

Job description

• Clearly state the job title
• Scope of work
• Job objectives
• Reporting line

KPI and responsibilities

• Criteria for evaluating work performance
• Professional responsibilities
• Confidentiality responsibilities
• Compensation responsibilities when causing damage according to regulations

Working location

• Main working location
• Cases of working at multiple locations
• Remote work (if any)

Job transfer

• Cases of job transfer
• Term of transfer
• Salary regime during transfer

How to stipulate salary in an employment contract in Vietnam

Basic salary

• Salary level according to job title
• Principles for salary adjustment

Allowances

• Responsibility allowance
• Lunch allowance
• Phone allowance
• Travel allowance
• Other allowances

KPI

• Conditions for entitlement
• Method of determining KPI bonus

Bonuses

• Monthly bonus
• Quarterly bonus
• Annual bonus
• Work performance bonus

OT (overtime)

• Conditions for working overtime
• Method of calculating overtime pay
• The right to refuse overtime in certain cases according to the law

Payment method

• Payment in cash
• Payment via bank account
• Salary payment period

Confidentiality clauses in employment contracts in Vietnam

The contents enterprises should stipulate regarding information confidentiality agreements with employees include:

• Scope of confidential information
• Trade secrets
• Technological secrets
• Confidentiality term
• Compensation responsibilities upon violation
• Permitted cases of information disclosure

How should the employment contract termination clause be drafted

Enterprises should clearly stipulate:

• Cases of contract termination
• Notice period
• Responsibility to hand over work
• Return of company property
• Payment of benefits after resignation
• Confidentiality responsibilities after resignation

Notes when drafting a labor contract for specific positions in Vietnam

Employment contracts for office workers

• For office workers, the employment contract needs to clearly stipulate the job title, working department, scope of tasks, working hours, and rest regimes.
• Because this group of workers usually works during administrative hours, it is necessary to specifically stipulate working time, overtime, timekeeping regimes, and work performance evaluation. In addition, enterprises should add clauses on the confidentiality of internal information, customer data, and work documents.

Employment contracts for managers and heads of departments

• For management positions or heads of departments, in addition to the basic clauses, the contract should clearly stipulate management authority, decision-making scope, human resource administration responsibilities, and responsibilities for the operating results of the department in charge.
• Besides, enterprises should add clauses on strategic information confidentiality, non-compete clauses after resignation, performance-based bonus mechanisms, and damage compensation responsibilities in case of violation of management obligations.

Employment contracts for sales staff

• Sales staff usually have an income tied to sales revenue, so the contract needs to specifically stipulate the method of determining sales revenue, KPI targets, commission rates, time of commission payment, and cases of adjustment or non-entitlement to commissions.
• In addition, enterprises need to clearly stipulate responsibilities for customer management, customer data confidentiality, business travel policies, entertainment expenses, and mechanisms for handling disputes arising related to customers managed by the staff member.

Employment contracts for technical workers

• For technical workers, the contract needs to clearly describe professional requirements, occupational standards, equipment operation procedures, and responsibilities for ensuring occupational safety.
• In cases where the employee is assigned to manage machinery, equipment, or assets of high value, the enterprise should specifically stipulate responsibilities for preservation, usage, and compensation when causing damage according to the provisions of the law. At the same time, it is necessary to add clauses on the provision of labor protective gear and occupational safety training.

Employment contracts for foreign experts

• When signing contracts with foreign experts, enterprises must ensure the employee fully meets the conditions to work in Vietnam according to legal regulations.
• The contract should clearly stipulate the working term, salary level in Vietnamese Dong or foreign currency as agreed, insurance regimes, housing support, travel expenses, work permit expenses, and other benefits for foreign experts.
• In addition, it is necessary to note the regulations related to personal income tax and the obligations of reporting and managing foreign labor.

Employment contracts for seasonal and short-term workers

For seasonal workers or short-term workers, the contract needs to clearly determine the working term, specific tasks to be performed, salary level, payment method, and the time of contract termination.

Due to the short working period, enterprises need to detail the responsibilities for handing over work, assets, and obligations arising during the execution of the contract to limit disputes after the contract ends.

Sample clauses enterprises should add to the employment contract in Vietnam

In addition to the mandatory contents required by law, when you draft labor contracts in Vietnam, you should add:

• Confidentiality clause
• Non-compete clause
• Clause on ownership of data and intellectual property
• Clause on training and reimbursement of training costs
• Clause on handling violations

Electronic employment contracts and labor data storage in Vietnam

According to Clause 1, Article 3 of Decree 337/2025/ND-CP, an electronic employment contract is an employment contract entered into and established in the form of a data message in accordance with labor laws and electronic transaction laws, having the same legal validity as a paper employment contract.

Conditions for entering into electronic employment contracts

According to Clause 1, Article 6 of Decree 337/2025/ND-CP, entering into an electronic employment contract is carried out via eContract ensuring the following conditions:

• Digital signature: Having digital signature software and digital signature verification in accordance with legal regulations.
• Security and incidents: Ensuring customer information safety; having technical plans to maintain and quickly fix incidents.
• Storage and search: Ensuring data integrity and the ability to easily search the contract.
• Identification and authentication: Having the function to accurately authenticate the identity of the employee and the employer.
• Confirmation of consent: Having technical measures to record that the parties have agreed to the contract contents.
• Certification and ID attachment: Having the function to certify the electronic contract and connect to attach an ID on the Shared Platform.
• Form conversion: Supporting flexible conversion from electronic contracts to paper documents and vice versa.
• Transaction account: Providing accounts complying with Article 46 of the Law on Electronic Transactions.
• Labor reporting: Supporting reports on labor utilization status according to the format of the Ministry of Home Affairs.
• Statistics and management: Having the function to synthesize and analyze data serving periodic or unexpected management.
• API connection: Linking with the Electronic Employment Contract Platform via standard application programming interfaces.
• Information security: Strictly complying with technical requirements on network information security.

Storage of electronic employment contract data

According to Clause 3, Article 6 of Circular 08/2026/TT-BNV, the storage term of an electronic employment contract is according to the service provision agreement between the parties but at least equal to the storage term on the Electronic Employment Contract Platform.

The storage term for data regarding electronic employment contracts, electronic employment contract appendices, and other related electronic documents on the Electronic Employment Contract Platform is 10 years from the date the employment contract terminates.

Differences between the types of employment contracts in Vietnam

Employment contract trends enterprises need to note in Vietnam 2026

• Increasing use of electronic employment contracts
• Remote working management
• Strict regulations on data security
• Clauses on intellectual property and corporate data
• Integrating KPIs and performance evaluation into the contract
• Enhancing compliance with laws on insurance and personal income tax

When should enterprises review employment contracts?

Enterprises should periodically review when:

• There are changes in labor laws
• Changing organizational structure
• Changing salary policies
• Transitioning working models
• Labor disputes occur
• Undergoing labor inspections or examinations
• At a minimum, review once every 1 to 2 years

Related questions

Can enterprises agree on probation in the employment contract

The parties can agree on probation contents within the employment contract or sign a separate probationary contract. If the probation is agreed upon in the employment contract, the contract must clearly state the probation period, as well as the rights and obligations of the parties during the probation period. The maximum probation period depends on the nature and qualification of the job according to the provisions of the law.

Is it mandatory to record KPIs in the employment contract

Current law does not strictly require the employment contract to have a KPI clause. However, for positions such as sales, management, or jobs evaluated based on work efficiency, enterprises should clearly stipulate KPIs or performance evaluation mechanisms to serve as a basis for determining bonuses, considering salary increases, evaluating the level of task completion, and handling issues arising during the labor process.

Can enterprises add non-compete clauses to the employment contract

Labor law does not prohibit parties from agreeing on a non-compete clause. For positions with access to trade secrets, technological secrets, or important information of the enterprise, the parties can agree in writing on the scope, term, and responsibilities of the employee after contract termination. However, the content of the agreement must be reasonable and must not contravene the basic principles of labor law.

Is it necessary to re-sign the employment contract when changing the salary level or job title?

It is not strictly necessary to re-sign the entire employment contract. In cases where only some contents change, such as the salary level, job title, working location, or other clauses, the parties can sign an employment contract appendix to amend and supplement the concluded contents. If there are many important changes or the parties want to replace the entire old content, they can agree to sign a new employment contract.

If clients need legal advice on labor matters, reviewing, amending, or require a reliable contract drafting service according to the actual needs of the enterprise, please contact Viet An Law. Our team of lawyers and legal specialists will provide top-tier labor law consulting to assist you with consulting on drafting employment contracts in Vietnam (2026) quickly, accurately, and effectively.